In an unexpected move, the Bank of Canada, in its meeting moments ago, raised the interest rate by 25 basis points to 4.75% from 4.50%.

And according to the bank’s interest report, the consumer price index, or inflation, came at 4.4% in April, which is the first increase in ten months with the rise in a wide range of goods and services, and it came higher than expectations, but the bank still expects inflation levels to decline to about 3% in the summer with Energy prices continue to decline.

The Canadian economy was stronger than expected in the first quarter of this year, recording a growth of 3.1%, as consumption growth was strong, and demand for services continued to recover, and the housing market also rebounded, while the labor market remained tight.

Based on the accumulation of evidence, the Board decided today to increase interest rates to rebalance and strive towards the Bank’s inflation target of 2% in a sustainable manner.

The Canadian dollar is trading at 1.3340 levels, up since the announcement of the statement against the US dollar by more than 50 points, after expectations were that the bank would keep interest rates unchanged.